FINRA AI Notice 24-09
FINRA Regulatory Notice 24-09 — Member Firm Obligations for AI Tools
United States · FINRA Reg. Notice 24-09 (June 27, 2024)
- Status
- In effect
- Took effect
- June 27, 2024
- Applies to
- FINRA-registered broker-dealers and associated persons
- Enforced by
- Financial Industry Regulatory Authority
FINRA reminded broker-dealers that existing rules — supervision, recordkeeping, advertising, and anti-fraud — apply fully to AI tools, including generative AI used for customer communications, surveillance, and trading. Firms misrepresenting AI capabilities or failing to supervise AI outputs face enforcement.
Who is protected: Retail investors and broker-dealer clients
Legal detail
FINRA Reg. Notice 24-09 (June 27, 2024) reiterates that Rules 2210 (communications), 3110 (supervision), 4511 (books and records), 2010 (standards of commercial honor), and the SEC anti-fraud regime apply to AI applications including LLMs. Firms must address hallucinations, IP risks, and customer-data confidentiality in supervisory procedures.
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Strength | Limited |
| Enacted | June 27, 2024 |
| Citation | FINRA Reg. Notice 24-09 (June 27, 2024) |
| Private right of action | No, agency enforcement only |
| Penalties | FINRA fines, suspensions, expulsions, and disgorgement |
| Topics | consumer protection · automated decision-making · AI disclosure and transparency |
| Agency page | Regulatory Notice 24-09 — Firms' Obligations in the Use of Generative AI and Large Language Models |
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Related consumer protection rules elsewhere
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- Vermont Data Broker Law (H.211) · Enacted (not yet in effect)
- Arkansas Frank Broyles Act AI amendment — voice and likeness protection (2025) · In effect
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- NAACP v. xAI (Colossus 2 Air Pollution) · Blocked / in litigation
- RI Therapy Chatbot Ban (2026) · In effect
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